economy
February 10, 2026
Overseas equities are beating their U.S. peers. What's next after this outperformance, per the charts
A surge in international and emerging markets equities raises the question of whether we’re in the early stages of a regime shift or is this just a trade.
TL;DR
- International and emerging markets equities are outperforming U.S. equities, contrary to the U.S. AI narrative.
- Investors cite onshoring policies and better overseas valuations as drivers for this rotation.
- Visual analysis of ratio charts (e.g., SPX/EEM, SPX/ACWX) shows a recent pullback in U.S. outperformance after years of dominance.
- There is evidence supporting a potential regime shift, leading to the inclusion of international exposure in some portfolios.
- The author acknowledges doubts but is following market signals, rotating portfolios towards overseas markets based on anticipated future international economic growth.
Continue reading the original article